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How Trump’s “One Big Beautiful Bill” Could Impact Your Food Truck
Learn how Trump’s new tax bill affects food truck owners—from equipment write-offs and tip deductions to SNAP cuts and QBI savings. Practical, no-fluff breakdown.
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Lena Kim | Last updated: July 31, 2025
In This Article:
Keep More of Your Profits: 20% QBI Deduction Goes Permanent
If your food truck is set up as an LLC, sole proprietorship, or S-corp, you're likely eligible for the 20% Qualified Business Income (QBI) deduction. This lets you deduct up to 20% of your net profit before calculating your federal taxes—and now, it’s permanent. There’s also a new $400 minimum deduction for businesses making at least $1,000 in net income.
What to do: Track your net profits. If you're clearing $1K or more annually, make sure you're taking the deduction. As your income grows, consult a tax pro to make sure you're not missing out due to phase-out thresholds.
Buying or Selling a Food Truck? Let’s Make It Simple
Browse hundreds of food trucks — from starter vehicles to fully-equipped kitchens.
Upgrade Equipment Now: Bonus Depreciation Is Fully Back
You can now fully deduct the cost of new equipment the year you buy it. That includes your grill, freezer, generator, POS system—even your food truck itself if placed into service. This rule used to phase out but is now permanent, giving you a big up-front tax break instead of spreading the deduction out over time.
What to do: If you're thinking about upgrades, pull the trigger before year-end. The faster you put new gear into service, the faster you get the tax benefit.
Buying or Selling a Food Truck? Let’s Make It Simple
Browse hundreds of food trucks — from starter vehicles to fully-equipped kitchens.
Tip & Overtime Deduction: Put More in Your Crew’s Pockets
For employees making under certain income limits, tips and overtime can now be deducted from taxable income—up to $25,000 in tips and $12,500 in overtime. This means your workers get to keep more of what they earn, even if they’re technically earning more.
What to do: Accurately record all tips and overtime. Talk to your team about this deduction—it could help them come tax time and boost morale. It might also help you retain good workers.
Buying or Selling a Food Truck? Let’s Make It Simple
Browse hundreds of food trucks — from starter vehicles to fully-equipped kitchens.
SALT Cap Raised: A Win for High-State-Tax Operators
The cap on state and local tax deductions (SALT) is lifted from $10,000 to $40,000. This mostly benefits owners in high-tax states who own property or pay hefty state income taxes.
What to do: If you’re in a state like California, New York, or Illinois, this might reduce your personal tax burden. Track all eligible SALT expenses and share them with your tax preparer.
Buying or Selling a Food Truck? Let’s Make It Simple
Browse hundreds of food trucks — from starter vehicles to fully-equipped kitchens.
Buying or Selling a Food Truck? Let’s Make It Simple
Browse hundreds of food trucks — from starter vehicles to fully-equipped kitchens.
Buying or Selling a Food Truck? Let’s Make It Simple
Browse hundreds of food trucks — from starter vehicles to fully-equipped kitchens.
Buying or Selling a Food Truck? Let’s Make It Simple
Browse hundreds of food trucks — from starter vehicles to fully-equipped kitchens.
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